HR outsourcing

Running Head: HR Outsourcing
BUSINESS AND MARKETING
Name
University
Course
Lecture
Date
Valuate the strategic, performance, ethical, and social responsibility issues associated with outsourcing HR, and how you would address and balance these issues as an HR Director.
The core value of every business is to remain relevant in its area of specialization; this has led to changes in the way businesses are managed today. Most of the businesses have opted to outsourcing their non-core operations within their organizations. This has enabled many organizations to concentrate more on to their core values and increased their sensitivity to the ever changing markets and various business needs. Business outsourcing has become an established way through which HR departments have adapted as a means to increasing efficiency and productivity within the organization. Outsourcing has been described by Donna Hastings as a business strategy that can fit in any organization regardless of its size. She says, one of the most important outsourcing benefits is not inclined to cost but to the additional capabilities that are achieved there after. In most organizations, payroll, benefit administration, recruitment and compensation are some of the most outsourced business operations. This is due to the need for increased compliance within these departments and the need to have better controls in place so as to eliminate redundancy, and increase efficiency (Anonymous, 2007).
* Strategic focus - why outsourcing over growing your own
An organization needs to consider some aspects before outsourcing. One of the issues to be considered is the rate of return on investment. This is very important and it has to be considered by both small and large organizations. The HR looks at the cost involved in using the shared service solution, i.e. where operations are centralized within the organization itself, to the use the single function outsourcing. Secondly it`s important to look at the organizations successes and evaluate its performance in relation to changing initiatives. Lastly it`s always important for every organization to identify its problems. This makes it possible for the organization to indentify the operations which are probably out of its limits and needs to be outsourced. The main idea behind outsourcing in an organization should be to provide outsourcing services that offers solutions to known problems but not identification of the problems (Anonymous, 2007).
* Cost savings
Outsourcing offers great opportunities to the HR department in bringing out the best of the available human and technical resources in the market. Cost saving and expertise are some of the benefit derived from outsourcing non-core human resource functions within an organization. Outsourcing gives room for employees to dedicate their energies to core responsibilities related to the organizations goals thus increasing their effectiveness. Also when it comes to new technologies, organization can always access a new technology as it is used by the outsourcing venders. Employees on the other side, says that, outsourcing is a preference to them when it come to certain HR issues. For instance through outsourcing confidentiality is maintained in personal matters like health history and other personal information related to benefits and savings. Most of the organization opts to outsourcing with the intention of cutting on cost. But this is not what always happens. According to the Director of an automobile supplier, what relay happens in outsourcing is that, employee from the outsourced department are assigned other duties within the organization, i.e. duties which are considered to be of a higher value. Outsourcing gives the HR employees the opportunity to work on more strategic issues within the organization rather than doing simple clerical assignments like maintaining records and book keeping.
Shared services involve centralization of selected HR functions within the business organization. Shared services are not as common as outsourcing. This method is mostly associated with organizations which have multiple locations. Sha...